Open Media Network is a free public service “designed to help you enjoy a broad selection of movies, public TV and radio, video blogs and podcasts while protecting producer’s copyrights”.
I am asking myself what the business model of OMN will be. At the moment their website is a promotion tool for Kontiki which is more than yet-another-p2p.
Kontiki, a five-year-old startup led by Netscape veterans, harnesses distributed file transfer technique best-known for facilitating piracy by BitTorrent software users for large television and film files. Kontiki adds a centralized “curator”, security, and Microsoft DRM. After being used for corporate video, indie film releases, and movie trailers, Kontiki set up a widely publicized BBC trial last summer to deliver TV and radio in the United Kingdom, and has been working with the Open Media Network public TV and radio initiative to distribute content from RSS aggregation with Creative Commons licenses
The interesting point is that Kontiki includes DRM. I suppose that the objective of the Kontiki founders is to provide the payment infrastructure for content creators who want to license their content to End-users, not necessarily for free.
There is a European counterpart to Kontiki: Gnabis a P2P network complemented with DRM promoted by Bertelsmann’s Arvato-Mobile. The Arvato technology is based on Microsoft DRM and standards developed within the DLNA. Arvato cooperates with Intel on Gnab – it can be expected that Intel powered devices (handhelds, mobile phones,…) will support the Arvato P2P network and DRM.
Now we could ask ourselves what the business strategy of Arvato/Gnab
could be?
- set up a platform like OMN to promote their P2P network/ DRM solution
- get a critical mass of early adaptors for the service (create awareness)
- team up with Intel and Microsoft to develop and sell End-user devices for the Gnab network (similar to Apple’s iPod strategy)
- license Bertelsmann content (e.g. music videos) excluselively for Gnab
- use promotion power to direct the mainstream End-users to subscribe to Gnab services
- support “majors” to maintain control over their distribution monoplies?
The Content Industry, Intel,…then TCPA/Palladium is not far… DRM/TCPA will be reality in CE Devices and nobody will prevent it in the short term, so we should *use* it. Now everything is a mixture of device/transport/content. So “they” may play on the whole : hardware and services. And Apple has taken the lead with iPod(hardware)/iTunes(services).
The entertainment industry (e.g. Sony, Bertelsmann…) don’t want to loose their distribution monopolies to device manufacturers like Apple. Up to now they could dictate the conditions of licensing contracts for artists on the creation side of the value-chain. On the other side they have their cartels to keep up retail prices for CDs and DVDs and they had some influence on End-user device technologies (e.g. DVD-CCA).
By keeping their control over the distribution monopolies in the digital space (e.g. Gnab P2P) the “entertainment industry” strives to maintain control over the “entertainment market”. P2P (Napster) has been a threat to their distribution monopolies, but first of all filesharing of copyrighted content is illegal and secondly there is no functioning business model for P2P (an artist cannot *sell* DRM-free content over the internet to “mainstream” users).
P2P combined with DRM will enable artists to sell content on the
internet to “mainstream” users. Now the question is whether:
- (a) the P2P network operators will set the license conditions for distribution
- (b) artists and end-users will negotiate the prices directly
The “entertainment industry”’s intention is that scenario (a) will succeed and therefore they are interested in services that license content to their device/hardware/transport platform according to *their* licensing conditions and business models (instead of Apple setting the licensing conditions for the iTunes platform).
“Internet Activists” believe that DRM is wrong (it contradicts the nature of data) and the entertainment industry will loose. They may be right in but in the next five to ten years this will not prevent the entertainment industry to deploy the internet for their business purposes. And the many musicians who license their rights to Collective Management Societies (e.g. GEMA) prove that there is a need to be paid for intellectual property.
I also believe that DRM is wrong and a world where people pay fair prices for content would be much better. Unfortunately the world is full of people who don’t pay for things they can get for free (that’s what I call the “mainstream” users). And this is where DRM can offer alternatives.
My intention is that interoperable DRM can be used to deploy my scenario (b) where artists control their businesses (e.g. by licensing their content under a Creative Commons License). The P2P/DRM platform would simply provide the technical platform and the services (e.g. hosting of the content, indexing,…) to artists and end-users.